What happens if I can’t pay my mortgage?

19 December 2023

A mortgage is a serious commitment, and paying it back requires discipline and planning. But if you’re struggling, support is always available, especially with the introduction of the new Mortgage Charter. If you can’t pay, what should your next steps be?

  1. Don’t panic

First things first, remember to keep a cool head. If you’re struggling to make payments, lenders seek, in the first instance, to come up with a payment plan to help you get back on your feet. You’re not going to lose your home overnight; repossession is a last resort. Indeed, in the first three months of this year, only 750 homes and 410 buy-to-let properties were repossessed (1).

  1. Talk to us

If you are finding it hard to keep up with costs, the best thing to do is communicate with us early. By tackling the problem head-on, you can prepare and adapt before you end up in a difficult position. The good news is that several options exist to mitigate the higher bills. Examples include extending the term of your mortgage, which can reduce the burden now but will ultimately result in more being paid back in total. It is also possible to switch to an interest-only mortgage, reducing the amount you’ll pay your lender each month.

  1. Protection is key

Lenders say the most common reasons for people falling behind on mortgage payments generally involve life-changing events such as a job loss or serious illness. This highlights the importance of protection policies such as income protection or critical illness cover.

In short… Keep calm and call us!

(1) UK Finance, 2023

🚨 Data accurate as of the date of publication – 19.12.2023

🚨Think carefully before securing debts against your home.  Your home may be repossessed if you do not keep up repayments on your mortgage.

🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.


Source: Quilter Financial Planning – Essentially Mortgages Q4 2023

4.8/5 - (22 votes)

Do you need professional advice or a no obligation quote?

Ask us for a quote


Podatek od zysków kapitałowych Navigating Capital Gains Tax – need to knows
21 June 2024
Capital Gains Tax (CGT), the levy on profits from the sale of assets such as...
First Time Buyers First-time buyers overlooked?
20 June 2024
The Spring Budget came as a disappointment for anyone looking to get a foot on...
Equity realise Equity release trends
19 June 2024
Statistics from the Equity Release Council highlight the trends seen in the market last year...
Insurance quote